1. Presentation to Massachusetts Electricity Roundtable
JumpStart Program
Presentation to Massachusetts Electricity Roundtable
Presented by
Steven M. Rothstein
AES NewEnergy, Inc.
May 18, 2001

2. Alternative Strategies
Participation Rates
Mandatory Enrollment (opt out)
Voluntary Enrollment (opt in)
Technical Changes
Customer Education
Current System
Mass DTE changes

3. Performance Based Rates Voluntary Enrollment Mandatory Enrollment
Topics to Discuss
Customer Education
Technical Changes
Performance Based Rates
Voluntary Enrollment
Mandatory Enrollment

4. AES NewEnergy Working In New England
Connecticut Conference of Municipalities
Massachusetts Food Association
New England Newspaper Association
Connecticut Conference of Independent Colleges

5. Consumer Education Critically important for all customer classes.
Increased customer awareness will stimulate greater competition.
Demand-pull strategy.

6. Consumer Education We advocate: Additional bill stuffers
Separate mailings
Customer seminars (LDC and/or DTE sponsor)
Media outreach
Paid advertising
Public Service Announcements
Web site links

7. Technical Changes
The electricity business is largely an information management business.

8. Technical Changes Streamline data authorization process
Support electronic and/or 3rd party telephone confirmation (data authorization and contract)
Encourage use of “smart” account numbers.
Encourage implementation of “power connections” type programs statewide

9. Technical Changes – con’t
Help new large Default Service C&I customers obtain historical data.
Assist suppliers with collecting customer credit information
Allow suppliers to collect outstanding payments more timely.
Ensure LDC has enough resources to process customer data in a timely manner

10. Performance Based Rates
As DTE moves forward with Performance-Based Rates, include support for competitive market as one of the measurements.
Customer education of competitive market
Ease of customer data flow
Other measurements to support customers’ right to choose

11. Voluntary Enrollment (Opt In)
Market for new & existing Default Service customers.
Account managers to meet with C&I customers. (Individual meetings and co-branded seminars.)
Provide briefing to pre-qualified suppliers about customer background.

12. Voluntary Enrollment (Opt In)
Customer Service Representative:
Have prepared scripts outlining preferred suppliers’ products.
Have suppliers’ authorization form, marketing material and website.
Establish “hot link” for incoming telephone calls.
Forward contact list of telephone calls.

13. Voluntary Enrollment (Opt In)
Supplier Prequalification Process
Member ISO - NE.
Licensed in Massachusetts.
Currently serving retail customers in New England.
Financial requirements.

14. Voluntary Enrollment (Opt In)
Direct mail to Default Service customers including bill inserts.
Co-branding of written materials.
Earned media (joint news conference/articles).
Devote a portion of current LDC paid advertising budget?
LDC website information/links.
Other initiatives.

15. Mandatory Enrollment (Opt Out)
Benefits:
Helps get Massachusetts ready for the end of Standard Offer Service in 2005 (45 months).
Encourages more customers to be more comfortable with competition.
Encourages more suppliers to invest in Massachusetts.

16. Mandatory Enrollment (Opt Out)
Propose program with extensive marketing to customers.
Provide customers with predetermined period (i.e. months) to select a supplier.
At end of period, randomly assign customers among pre-qualified suppliers.
Allow suppliers to select rate class(es) to serve.

17. JumpStart Program Steven M. Rothstein Managing Director, New England
AES NewEnergy, Inc. F